Kitsap County real estate information for home sellers from SoundBiteBlog.

“Open Mouth, Insert Fine” or “Real Estate Roulette”

May 1, 2008 at 11:17 pm · Filed under Bites of Kitsap, Bainbridge Island Real Estate, Real Estate Bites, Buyers, Sellers, Sparks from Sparky

With the advent of the Internet, information has become accessible at blinding speed. Want to know the migrating habits of the South African Gnu? What is the proper way to eat sushi? Or what was the original color of coca-cola? Powerful search engines enable us to locate virtually anything we want at the touch of a few keys. Websites, forums, and networks abound where we can obtain answers for every conceivable question. Information equips and empowers. It serves to form our opinions and guides our decisions.

This rapid accessibility and transfer of information is changing the way we conduct business as well. Companies and business professionals are moving away from one-sided, static websites to dynamic, interactive platforms, such as blogging, that allow consumers the ability to directly engage in virtual conversations.

Open and transparent dialog is a welcomed development in the real estate industry. The shrouds of mystery surrounding our profession have been quickly dissipating, offering consumers a well-deserved look into the inner-workings of the real estate world.

But there are inherent dangers to this new-found ‘free-for-all’ of information. And the potentially damaging ramifications exist for either side of the discussion.

Here’s an example of an actual ‘real’ question that was recently posed by a consumer on a popular real estate site:

“We just recently put our home on the market and we’re wondering, what is the selling market like now? What is the average time to sell a home in the $800K range?”

I’m not going to publish the various ‘responses’ to this inquiry (there were 5 answers at last look), but suffice it to say that all of the respondents chimed in with very detailed local markets statistics, jockeying and positioning themselves as the undisputed resident authorities. Almost all of them offered some measure of advice or counsel, and added the ‘perfunctory’ “for more information, my website/email is blah, blah, blah“….

What I found curiously missing was the question that should always be asked right out of the gate:

“Are you currently working with a licensed real estate professional?”

I’m thinking to myself, does this person have their home listed through a licensed agent, or are they attempting to market it on their own?

As real estate professionals, it’s ingrained into us from almost day one (Realtor Code of Ethics, Article 16) NOT to engage, counsel, or solicit someone who is, by contract, under representation by another agent. When in doubt, ASK!

And, as a consumer who is asking the question, how do you know if the individuals responding to your questions are actually ‘qualified’ to answer accurately? Are they licensed in the State where your home is located? Do they know and understand the unique nuances of your particular area? Who holds them accountable if they provide you with misleading or false information? How do you know for sure if they’re even a ‘real’ real estate professional?

Now don’t get me wrong. I am thrilled about all the advancements in Internet technology and their impact on the real estate industry. Many of the applications are having a very positive effect, both for us professionals, and for consumers.

But as real estate professionals, in our drive and desire to be helpful, we need to be ethically prudent, and exercise caution on what we say, and to whom we respond.

And, as consumers, though the Internet opens up a unlimited wealth of resources, remember that ultimately, real estate is local. The best way to obtain a qualified response?

Ask a local expert.

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“Sabotaging Your Listings” - Removing Home Showing Obstacles

April 24, 2008 at 1:50 am · Filed under Poulsbo Real Estate, Real Estate Bites, Buyers, Sellers, Sparks from Sparky

We were pressed for time. My Out-of-State Buyers had only a few days, and were on a whirlwind schedule. They scoured the Internet from a coffee shop wireless connection, and threw a few more candidates into the mix.

It ended up being like that VISA commercial, where everyone in the store is using their VISA card, and then the one guy tries to use cash, and the whole place shuts down from the log jam.

I called one of the last minute entries. The ‘phone-to-show’ number was the Listing Agent’s cell number. I got his voicemail:
“Hi! This is Rich Jacobson of Brio Realty. I was wondering if I might be able to schedule a showing for your listing on Jones Street for later this afternoon. I have some Buyers from out of town, and they would like to see the house.”

I got a return phone call later that day:

“Hi, This is Bill from XYZ Real Estate. Here are the showing instructions for the Jones Street property. Monday, Wednesdays, and Fridays from 5:30pm to 7:00pm, Tuesdays and Thursdays from Noon to 2pm, and Saturdays and Sundays after 7pm.”

…..The brakes on the Home Tour bus came to a screeching halt!!!!…..

It amazes me, given the current market conditions (slow as molasses going uphill on a cold day), why anyone would create obstacles to prevent a home from being shown?

Typically here in our market, the ‘phone-to-show’ number is the Seller’s phone. The Buyer’s agent calls and sets up the showing appointment with them directly. This eliminates one more step in the communication chain. Some Listing Agents prefer to have their cell phone as the ‘phone-to-show.’ This isn’t necessarily an issue, as long as the Listing Agent is readily accessible. But then, the Listing Agent still has to call the Sellers, obtain permission, then call the Buyer’s Agent back. This can sometimes cause delays.

In a slow market, where you have tons of inventory, and lots of homes competing for the same pool of Buyers, Sellers need to do everything within their ability to make the showing process easy and painless for Buyers and their Agents. That means removing any potential obstacles that may exist.

Now, obviously, this doesn’t mean, as a Seller, that you do anything that compromises your safety. Don’t ever allow anyone in through your front door who can’t establish their professional standing as a licensed real estate professional. Always have them activate the Lockbox first, to ensure they can properly/legally access the key, and provide digital record of their visit.

As a Seller, you need to be as accommodating as possible if you’re going to successfully compete with other homes on the market.

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Choosing Your Real Estate Agent: “One Size doesn’t fit All”

April 12, 2008 at 12:11 am · Filed under Silverdale Real Estate, Real Estate Bites, Buyers, Sellers, Sparks from Sparky

I’ve been reading a number of blog articles lately from other real estate agents who promote themselves as though they’re the cure for cancer. They proceed to explain why potential clients should select them as their agent. They all use many of the same descriptive terms - ‘Honest’ or ‘Ethical’ or ‘Hard-working.’ And it just makes you scratch your head and wonder, if all of them are so honest, ethical, and hard-working, why is the general public’s perception/approval rating of real estate agents so low?

Many of the agents I know respond to Seller inquiries rather agressively. This isn’t bad, in and of itself. Being confident in one’s abilities is a good trait, as long as it doesn’t supersede or overshadow the best interests of the potential client.

But ‘One Size’ doesn’t fit All. Let me explain…

Whenever I become engaged in conversation with a potential client, I let them know up front, that while they’re interviewing me, I am interviewing them as well. There are so many dynamics and variables that exist from one client to the next, I just never assume that I will work/partner with everyone who asks.

I’m not being rude or arrogant in this approach. The working relationship between a real estate professional and their client is crucial to achieving success. In a slow market like we are experiencing right now, with high levels of inventory and highly selective Buyers, it is imperative that a home be priced agressively and the necessary steps be taken to ensure that the home is adequately prepared for market.

Quite honestly, there are some instances where I feel customers can be served better through other means: 

With all the recent foreclosures, short sales are becoming increasingly common. This area is not one of my strong suits, so I would probably refer it to another agent, one that I know has proven ability.

If someone is ‘upside down’ (owes more on the house than they could sell it for), or lacks equity, it may be better for them to consider using a ‘limited-service’ agency - a ‘per menu’ provider that will place their home in the local MLS for a flat fee. Typically these agencies will only put up a yard sign, fill up the flyer box, and enter the home in the MLS. They typically don’t help counsel you or negotiate any offers that come in. You’re on your own there. But that might be a better situation for some, as opposed to using a ‘full-service’ agent.

What are the specific, current market dynamics in the area of the subject property? What are the inventory levels of comparably priced homes? What are the Seller’s goals or timeframes for selling? These are just some of the nuances that vary with each situation.

So while I like to think I’m a pretty good agent, I realize that I can’t be all things to all people.

That’s one of the many benefits of blogging. It allows me to share insights into who and what I am. Through my writing, I can convey my unique perspective, my passions, and my personality. Prospective clients can determine whether we would be a good fit without ever having met in person. How cool is that?

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True or False - “Now is a ‘GREAT’ time to Buy Real Estate!”

March 6, 2008 at 9:01 am · Filed under Bremerton Real Estate, Silverdale Real Estate, Real Estate Bites, Buyers, Sellers, Sparks from Sparky

As I travel throughout the Real Estate Blogosphere these days, I see a lot of articles being published by agents with the positive-spin headlines,….

…..”It’s a GREAT Time to Buy!”

I wonder how much of this is simply hopeful optimism? Wishful thinking? Or an attempt by those in the real estate industry to counter the incessant media bombardment of ‘Doom & Gloom?”

Well, let’s face it, in most markets across the country, existing homes sales have declined significantly. There’s no way to sugar coat that reality. And as much as we’d love to see things turn around soon, there is no substantive indication of that happening anytime in the near future.

But I suppose, if enough people say that it’s a good time to buy, then maybe some innocent and unsuspecting consumer will actually decide to ‘buy’ something? Just like Peter Pan, we could collectively think ‘Happy Thoughts’ about the market, and magically, home sales would fly!

Buying a home is a HUGE decision, by far one of the most important financial investments you’ll probably ever make. Certainly not something to be rushed into based on the overly zealous opinions of someone who doesn’t get paid unless YOU buy!

So, is it TRUE or FALSE? Is ‘Now’ a good time to Buy?

Well, the answer is TRUE. And FALSE. It really depends on each individual situation. What’s your current financial status? What are your goals? Where do you want to buy? How long do you plan on living in the home?

Here in Kitsap County WA, many of our clients are Active-Duty military. A good number of them are typically on orders to be stationed here for 2 to 3 years. In the past, with home valuations appreciating nicely, investing in a home purchase made sense in most instances. But with the current market decline, it may be better for some people to take advantage of on-base housing, or rent.

If you’re considering a home purchase, find a real estate professional who knows the local market intimately, and can give you reputable counsel, based on your particular needs.

And if the first words out of their mouth is, “It’s a Great Time to Buy!,” then give me a call.

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“Is the Mulitple Listing Service on the Endangered Species List?”

February 28, 2008 at 10:29 am · Filed under Real Estate Bites, Buyers, Sellers, Mortgage Bites, Sparks from Sparky, Business Bites

Last month, Reuters announced that online listing aggregators Yahoo! Real Estate, Zillow, and Trulia had all agreed to adopt a standardized format for the distribution of real estate listings data. This allows the flow of critical information from real estate franchisors, brokers, and MLS agencies to move more quickly and efficiently to consumers.

In his 1993 prophetical “Lions over the Hill” speech, then NAR (National Association of Realtors) President, Bill Chee, predicted that one day the predatory ‘lions’ of technology would come along and prey upon the longstanding and rather complacent gatekeepers of residential market information, the Multiple Listing Services.

According to Wikipedia, “A Multiple Listing Service (MLS) (also Multiple Listing System or Multiple Listings Service) is a group of private databases which allows real estate brokers representing sellers under a listing contract to widely share information about properties with real estate brokers who may represent potential buyers or wish to cooperate with a seller’s broker in finding a buyer for the property. There is no single authoritative “MLS”, and no universal data format. The many local and private databases–some of which are controlled by single associations of realtors or groupings of associations (which represent all brokers within a given community or geographical area) or by real estate brokers–are collectively referred to as the MLS because of their reciprocal access agreements.”

Here in the US, there are over 800+ MLS systems that are owned, operated, and governed by varying private entities (real estate companies, county or regional Board of Realtors, or trade associations). In the past, each of these MLS systems set their own rules for membership, access, and sharing of information. All, however, are subject to nationwide rules laid down by NAR.

Dating back to the 1960’s, the original purpose of the MLS was to simplify the sharing of information from Sellers to Buyers. It was a system that worked back then, and everyone seemed to benefit. Licensed agents were naturally required to contribute a subscription fee to gain access to this listing information.

But times have changed, dramatically. With nearly 85% of consumers accessing the Internet to begin their home buying process, the drive and need for the free flowing access of listing information is forcing the MLS to relinquish their traditional strongholds and concede to growing consumer demands.

The ‘Lions’ are no longer ‘over the hill,’ but they’re in the camp and halfway through their meal!

New competitors such as Google Base, Craigslist, Oodle, and those listed above, are examples of newer alternatives to the MLS service. Recent traffic statistics clearly show that these sites have gained considerable traction and popularity among consumers and real estate professionals.

So with more and more listing data becoming available to the general public, is the MLS headed for the Endangered Species List? What will their proposition of value be to the hundreds of thousands of real estate professionals across the country who are required to contribute to their coffers?

In his speech back in 1993, Mr. Chee predicted that their organization would lose the MLS in just a few, short years. In fact, he gave them less than a 50% chance of stopping that inevitability from happening. He challenged his listeners to change with the times, to embrace emerging technology, and instead ’become’ the Lion!

And now, the vultures are circling the remains….

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Sparky & Buckwheat win “Magnificent 7″ Top Consumer Articles for 2007!

February 12, 2008 at 12:22 am · Filed under Real Estate Bites, Buyers, Sellers, SoundBite Bites, Sparks from Sparky

Sparky (aka Yours Truly) and Buckwheat (aka Mark Flanders), the duo caped crusaders of SOUNDBITEBLOG, have both received the prestigious Magnificent 7 Award from Larry Cragun of RealEstateUndressed!

Every year, Larry scours the Blogosphere, looking for the best of the best in consumer-oriented real estate articles. Each month he selects 7 articles from among the hundreds that he reads. At the end of the year, he goes back and selects 7 winning articles from among the 84 that were selected throughout the year.

Mark won for his article, “Ten Commandments for Mortgage Applicants.”

I was chosed for my article, “Putting the Cart before the Horse: Making a Contingent Offer.”

*  *  *  *  *  *  *  *  *  *  *  *  *  *  *  *

Five of the Seven winning articles were written by members of the popular Real Estate Network Community, ActiveRain. Those also honored included:

Ardell DellaLoggia, for her Rain City Guide article, “The Flip Side of the Sub-Prime Story.”

Kelly Koehler, the Housechick, for her article, “17 Reasons to have New Construction Homes Inspected.”

Steve Leung, for his article, “Real Estate Myths Home Buyers Fall in Love With!”

And two, count them, Two articles by Rhonda Porter, “Picking your next mortgage by rate shopping? You might as well be playing Liar’s Poker!” and “Mortgage Interest Rate Locks 101.”

Congratulations to all the winners, and our special thanks to Larry Cragun for sponsoring such a valued contest!

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